10/15/24, 1:05 PM REAL ESTATE FINANCE CHAMPIONS EXAM NEWEST 2024 ACTUAL EXAM COMPLETE 180 QUESTIONS AND CORRECT D…
REAL ESTATE FINANCE CHAMPIONS EXAM
NEWEST 2024 ACTUAL EXAM COMPLETE 180
QUESTIONS AND CORRECT DETAILED ANSWERS
(VERFIED ANSWERS)
Terms in this set (188)
The percentage of the lesser of the appraised value
or sales price that the lender will lend.
Loan-to-Value Ratio (LTV)
ex: If a borrower is approved for an 80% loan, it
means that the lender will loan up to 80% of the sales
price or appraised value, whichever is lower.
Includes both real and personal property ( fixtures
Package Mortgage
and furnishings)
Blanket Mortgage Covers more than one piece of property.
Method of financing which preserves the low, existing
Wraparound Mortgage
interest rate on the original note.
Permits additional borrowing on the same note. This is
Open-End Mortgage sometimes called a credit card mortgage or a home
equity line of credit - HELOC.
The monthly house payment includes principal,
Budget Mortgage
interest, taxes and insurance (known as PITI)
A hard money loan is a specific type of asset-based
Collateral -Dependent
financing in which a borrower receives funds secured
Loans
by the value of a parcel of real estate.
, 10/15/24, 1:05 PM REAL ESTATE FINANCE CHAMPIONS EXAM NEWEST 2024 ACTUAL EXAM COMPLETE 180 QUESTIONS AND CORRECT D…
Is a measure of the willingness of a borrower to make
Character on-time payments. Credit character is revealed in the
borrower's credit report.
Is a measure of the borrower's ability to repay the
Capacity debt, and is demonstrated through current earnings
and job stability.
Is the sum of all assets that the borrower has
Capital
accumulated.
Is something of value that can be pledged as security
Collateral
for repayment.
Is the return that the investor recieves over the life of
Yield
the loan. (Also known as profit)
The process of creating a new mortgage loan,
Originator including all steps taken by a lender to attract and
qualify a borrower.
Typically functions as a middleman between the
borrower and the lender, negotiating, selling or
Mortgage Broker arranging loans to be delivered to larger investors. At
one time originated up to 80% of all mortgage loans.
(Back on the rise)
Entities which provide their own funds for the purpose
of providing mortgage financing, as opposed to
Mortgage Banker
commercial banks/savings associations. (Held, or
"Warehoused")
Usually smaller in scale than mortgage bankers or
Correspondent Lender brokers, these lenders typically extend loans with
their own funds, at their own risk.
Once application is complete the file moves into this
Processing
phase.
The detailed process of evaluating a borrower's loan
Underwriting application to determine the risk involved for the
lender.
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